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Horizon Bancorp: Undervalued, Safe And Profitable

A funny thing appears to be happening in the regional bank space in that after rebounding from 2008-9 lows, the market is having a hard time deciding what sort of valuation to give a well performing bank. The typical scenario right now seems to be between 1-2Xs tangible book value for any type of positive information. Consistent returns on assets, 1-2Xs, improving NPLs but no work on growing loans, 1-2Xs. However it is setting up, investors should be increasingly skeptical and/or picky in choosing which bank shares they want to acquire because all of them are in a transition period that is putting increasing pressure on NIMs, and all of them don't seem to know exactly how revenues are going...

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